Q+E has developed tailored certificates for internal development, such as for Microsoft and has developed tailored certificates for sector specific risk requirements, such as for the electric power sector.  For information on CERM – Electric Reliability certificate, please visit https://cermacademy.com/cerm-electric-reliability/.

CERM – AEROSPACE DRIVERS
What are the drivers for CERM – Aerospace?

• International Civil Aviation Organization (ICAO) is inducing its 191 members states to adopt the risk based, Safety Management System (SMS).
• FAA, as US signatory, has adopted SMS and has placed it into statute/rules.
• US federal and EU government have adopted risk based public safety and Critical Infrastructure Protection (CIP) programs.
• Public listed companies usually are required to have ERM programs that comply with SOX 404 internal control and materiality requirements.  Risk requirements are now moving to operations, supply chain, product development, IT, service operations, and business continuity.
• Public listed aerospace companies are now designing, deploying, and assuring internal control systems based on ERM frameworks.
• International (ISO 19011, ISO 9001, etc.) and aerospace (AS 9100 rev C, etc.) are risk based.  AS 9014/3 is rumored to include continuing education requirements for AS 9100 aerospace auditors in its next revision.
• Supply management ‘best practices’ are more often risk based as traditional practices are being reassessed such as global sourcing is moving to domestic sourcing, multiple sourcing to single sourcing, JIT to buffer inventories, from QMS supplier audits to supplier risk audits, etc.

Risk management is replacing quality management in many companies.  ISO 9000 in the 2015 update will incorporate risk management and will impact over 1 million companies worldwide.

CERM – AEROSPACE SOLUTION
In response to the above drivers and needs, Quality + Engineering (Q+E) developed the CERM – Aerospace certificate to provide risk education and support to aerospace, engineering, operations, and technology professionals.  Why?  Every day there seems to be a ‘Black Swan’ event.  A ‘Black Swan’ event is a seemingly low likelihood, but high impact, catastrophic event, such as the Gulf oil spill, Boeing 787 grounding, Toyota recalls, lettuce ecoli, volcanic eruptions, cyber security intrusions, and other operational risk events.  Risk management is now considered a core skill for the exercise of due care for all aerospace engineering, technology and operations professionals.

Volatility, uncertainty, complexity, and ambiguity are challenging all organizations.  Period.  A recent survey of 1,500 chief executives by IBM concluded:

“Global complexity is the foremost issue confronting these CEOs and their enterprises. The chief executives see a large gap between the level of complexity coming at them and their confidence that their enterprises are equipped to deal with it.”
Source: Business Week

The solution to managing complexity and volatility is enterprise risk management (ERM).  Harvard Business Review (HBR) several years ago focused on risk management and concluded:  

“I think we now live in an era when many of the concerns in running organizations are being reframed in terms of risk, which suggests that risk professionals are likely to rise to the top.”^[i]
Source: Harvard Business Review.

The following surveys and reports reinforce the need for enterprise risk management:

• Board of Directors should “consider the full breadth of material risks that can impact the company” and “make risk management actionable not just an exercise.”
  Source: ‘Director Insights on Emerging Risk Oversight Practices,’ The Conference Board.

• Direct responsibility for risk management rests with the CEO (43%), COO, (19%), or CRO (20%).
  Source: ‘Executive Survey,’ Korn/Ferry Institute.

Greg Hutchins PE CERM
503.233.1012 or 800.COMPETE
GregH@CERMAcademy.com